Terminology used in the United States and Canada to denote a financing type lease which is required to be "capitalized," i.e., the leased equipment must be recorded on the Lessee's balance sheet as assets with corresponding liabilities, and must be depreciated on the Lessee's books (as opposed to an Operating Lease, where the assets do not appear on the Lessee's balance sheet but rather on the Lessor's, and where the Lessee records all lease expense as operating expenses).